After you have installed the server, created an NT account for it and assigned permissions to the account, you need to edit the service itself so that it will not run as a “System Account” (this is the default account choice). Running the service as “System Account” poses the potential hazard of giving users complete access to your system.
Click on the Windows Start button, select Settings > Control Panel > Services. (W2K Control Panel > Administrative Tools > Services.)
Select CuteFTP Server from the list of services and double-click or press the Startup button. The Service dialog box, depicted below for Windows NT, will appear.
Below Log On As, change the service from a System Account to This Account.
Select the FTPServer user account you created previously.
Click OK.
You will need to restart the system in order for the change to take affect.